Wp/11089/2023 Of Mohammed v. The Income Tax Officer Ward 4(3)(3)

Digitally signedby PAVITHRA NLocation: HighCourt OfKarnataka - 1 - NC: 2023:KHC:20428WP No. 11089 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14 DAY OF JUNE, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV -WRIT PETITION NO. 11089 OF 2023 (TIT) BETWEEN: MOHAMMED S/O SRI. YAKOOB SAHIB, AGED ABOUT 49 YEARS, PRESENTLY RESIDING AT NO. 558-4, MARKET ROAD, SARJAPURA, ANEKAL, BANGALORE - 562 125. PAN: . …PETITIONER (BY SRI: S. ANNAMALAI, ALONG WITH SRI: VENKATESH K PANI, ADVOCATES) AND: 1. THE INCOME TAX OFFICER WARD 4(3)(3), BMTC BUILDING, 80 FEET ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BANGALORE - 560 095. 2. NATIONAL FACELESS ASSESSMENT CENTRE, REP. BY ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME-TAX/ INCOME-TAX OFFICER, INCOME-TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2 FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI - 110 003. …RESPONDENTS (BY SRI: M. DILIP, ADVOCATE) THIS WRIT PETITION IS FILED PRAYING TO QUASHING THE ASSESSMENT ORDER PASSED UNDER SECTION 147 RWS 144 OF THE ACT DATED 18/03/2023 BEARING DIN NO ITBA/AST/S/147/2022-23/1050951700 (1) ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE -A1 AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has sought for setting aside of the assessment order passed under Section 147 r/w Section 144 of the Income Tax Act, 1961 (for brevity 'the IT Act') for the Assessment Year 2018-19 at Annexure-A1, sought for setting aside of the computation sheet at Annexrue-A2, setting aside of the demand notice issued under Section 156 and penalty notices at Annexrue-A4 and Annexure-A5. The petitioner has also challenged validity of the notice under Section 148(A)(b) at Annexure-B1 and the order under Section 148(A)(d) at Annexure-B2 as well as the notice under Section 148 at Annexure-B3. 2. It is the submission of learned counsel for the petitioner that his original PAN number is whereas in the present impugned proceedings, notices have been issued to another PAN number obtained by him which according to him was a bona-fide lapse bearing PAN No. . It is submitted that PAN No. was not in use and that all transactions have been declared in his formal PAN No. and accordingly, the Authorities by oversight, have issued notices to PAN No. . It is further submitted that there was no e-mail ID registered insofar as such pan number is concerned and that would come out on a perusal of the communication by the Department at Annexure-K. Accordingly, it is submitted that in light of the admitted position as is also evident from Annexures-E and G2, where no e-mail address has been referred to, there is no communication by way of e-mail with respect to notice under Section 148(A)(b) and consequently, the order under Section 148(A)(d) has been passed without any reply from the petitioner. It is further submitted that all transactions which are subject matter of notice under Section 148(A)(d) has been declared under PAN No. and that, if an opportunity is afforded, he would convince the Authority by way of reply to the notice under Section 148(A)(b) and the proceedings itself could be dropped. 3. Heard both sides. would convince the Authority by way of reply to the notice under Section 148(A)(b) and the proceedings itself could be dropped. 3. Heard both sides. 4. The admitted facts that are made out from the communication of the Department at Annexure-K as well as a perusal of the proceedings at Annexures- E and G2 are that, there is no e-mail ID registered insofar as PAN No. . If that were to be so, the right available to the petitioner to make out his reply to the notice under Section 148(A)(b), which may result in passing of an order under Section 148(A)(d) has been violated. Such right though is procedural is substantive in effect as by virtue of his explanation to the notice under Section 148(A)(b), the attempt to open the proceedings by way of re-assessment itself could be dropped, if his explanation is considered and accepted. 5. Accordingly, in light of the facts that are made out, case is made out for setting aside the proceedings post 148(A)(b) notice. 6. Accordingly, Annexures- A1 to A5 are set aside as also the orders at Annexures-B2 and B3. Petitioner is at liberty to respond to the said notice under Section 148(A)(b) within a period of thirty days from the date of receipt of this order. The Respondent- Authority is at liberty to proceed further in accordance with law. Accordingly, petition is disposed off in terms of the above. All contentions are kept open. PN Sd/- JUDGE